What is the process of starting an LLC in Wisconsin?

What is the process of starting an LLC in Wisconsin?

Starting a Limited Liability Company (LLC) in Wisconsin can be a great way to protect your personal assets and achieve business goals. However, the process can be complex and time-consuming if you don't know where to start. In this article, we'll provide a step-by-step guide on how to start an LLC in Wisconsin, including the necessary paperwork, fees, and other requirements.

Why Form an LLC in Wisconsin?

An LLC offers several benefits, including:

• Personal asset protection: An LLC separates your personal assets from your business assets, protecting you from business debts and lawsuits.
• Tax benefits: LLCs are pass-through entities, meaning that the business income is only taxed at the individual level, not at the business level.
• Flexibility: LLCs can have multiple owners (known as members) and can be managed by either the members or a designated manager.

Step 1: Choose a Business Name

The first step in starting an LLC in Wisconsin is to choose a unique and memorable business name. The name must be distinguishable from other business names in the state and must not contain any words or phrases that are prohibited by the state. You can search for available business names on the Wisconsin Department of Financial Institutions website.

Step 2: File Articles of Organization

Once you have chosen a business name, you must file Articles of Organization with the Wisconsin Department of Financial Institutions. The Articles of Organization must include the following information:

• Business name and address
• Name and address of the registered agent
• Name and address of the organizer
• Business purpose
• Management structure

The filing fee for the Articles of Organization is $130. You can file online or by mail.

Step 3: Create an Operating Agreement

An operating agreement is a document that outlines the ownership and management structure of the LLC. It should include the following information:

• Member names and addresses
• Member percentages of ownership
• Management structure
• Decision-making processes

The operating agreement is not filed with the state, but it is an important document that helps to establish the LLC's internal rules and procedures.

Step 4: Obtain an EIN

An Employer Identification Number (EIN) is a unique number assigned to the LLC by the IRS. It is used to identify the business for tax purposes and is required for opening a business bank account and hiring employees. You can apply for an EIN online through the IRS website.

Step 5: Open a Business Bank Account

Once you have obtained an EIN, you can open a business bank account in the name of the LLC. This will help to separate your personal and business finances and make it easier to manage your business expenses.

Step 6: Obtain Licenses and Permits

Depending on the type of business you are starting, you may need to obtain licenses and permits from the state or local government. These can include business licenses, sales tax permits, and other types of permits.

Conclusion

Starting an LLC in Wisconsin can be a complex process, but by following these steps, you can ensure that your business is properly formed and compliant with state regulations. Remember to choose a unique business name, file Articles of Organization, create an operating agreement, obtain an EIN, open a business bank account, and obtain any necessary licenses and permits.

By following these steps, you can protect your personal assets, achieve business goals, and establish a successful LLC in Wisconsin.